The property market in the Midlands received another blow as Keren Homes and subsidiary Keren Homes Birmingham announced they had gone into administration.

The companies – both set up in 2005, are under the control of KPMG, nominated to take over the accounts.

Keren Homes Birmingham, was behind the Nu Living scheme in central Birmingham.

Keren had appointed Connells New Homes as selling agents on the 29 two-bedroom homes in Irving Street, the third and final phase of the company’s city development, and launched an eye-catching marketing scheme to sell the flats shortly after the deal was announced.

Keren Homes Birmingham was placed into administration by Bank of Ireland, its main lending bank on the Nu Living development project. The company, which was based in Scotland, is currently being run by a team from the KPMG office in Glasgow.

Graham Berry, a director of Keren Homes Birmingham, said he still had the full support of his fellow directors in a statement to investors.